SPNEC eyes P3.8 billion loan for Tarlac expansion

MANILA, Philippines — Tycoon Manuel V. Pangilinan’s SP New Energy Corp. (SPNEC) is securing a P3.78-billion loan from Philippine National Bank (PNB) to bankroll the expansion of its solar footprint in Tarlac.

In a regulatory filing yesterday, SPNEC said its board of directors approved a credit facility from PNB to its subsidiary, Solar Philippines Tarlac Corp. (SPTC).

The credit facility will be used to fund the expansion of SPTC’s existing solar power plant and refinance its current loan in a bid to secure more favorable rates.

In connection with this term loan, the board authorized the creation of a security interest over SPNEC shares in SPTC.

SPNEC will serve as sponsor for the issuance of a standby letter of credit for debt service reserve account purposes. This ensures that there are sufficient funds to cover loan payments.

The company, through SPTC, plans to expand its 85-megawatt-alternating current Tarlac 1A in the municipality of Concepcion by 31 MWac.

Earlier this year, SPNEC signed a P150-billion loan with PNB, BDO Unibank Inc., Bank of the Philippine Islands, Security Bank Corp., China Banking Corp. and Metropolitan Bank & Trust Co.

The 15-year omnibus loan and security agreement — the largest of its kind in the Philippines to date — bankrolls the construction of what could become the world’s largest integrated solar and battery storage facility.

MTerra Solar, consisting of 3,500 MW of solar panels paired with 4,500 MW-hours of battery storage components, straddles the provinces of Nueva Ecija and Bulacan.